How are XME collar max profit and max loss calculated?

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the XME collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.90%), the computed maximum profit is $609.50 per contract and the computed maximum loss is -$490.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a XME collar?

The breakeven for the XME collar priced on this page is roughly $116.91 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The XME market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current XME implied volatility affect this collar?

XME ATM IV is at 34.90% with IV rank near 30.88%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.

XME Collar Strategy

XME (State Street SPDR S&P Metals & Mining ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

The State Street SPDR S&P Metals & Mining ETF (XME) seeks to deliver investment results that accurately reflect the total return performance of the S&P Metals and Mining Select Industry Index, prior to factoring in any fees and expenses. This fund provides targeted exposure to the crucial metals and mining segment of the S&P Total Market Index (TMI). Its holdings span a comprehensive list of sub-industries, including Aluminum, Coal & Consumable Fuels, Copper, Diversified Metals & Mining, Gold, Precious Metals & Minerals, Silver, and Steel. XME tracks a modified equal-weighted index, a design choice that aims to prevent overconcentration in any single company or sub-industry. This approach ensures a balanced representation across large, mid, and small-capitalization stocks within the sector. Ultimately, this ETF enables investors to adopt either strategic or tactical positions within the metals and mining space with a greater degree of specificity compared to broader, more general sector-based investment vehicles.

XME (State Street SPDR S&P Metals & Mining ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $4.44B, a beta of 1.27 versus the broader market, a 52-week range of 76.46-135.68, average daily share volume of 2.2M, a public-listing history dating back to 2006. These structural characteristics shape how XME etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.27 places XME roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. XME pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a collar on XME?

A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot.

XME snapshot

As of August 14, 2026, spot at $117.38, ATM IV 34.90%, IV rank 30.88%, expected move 10.01%. The collar on XME below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.

Why this collar structure on XME specifically: IV regime affects collar pricing on both sides; mid-range XME IV at 34.90% typically pushes the short call premium to roughly offset the long put cost, with a market-implied 1-standard-deviation move of approximately 10.01% (roughly $11.74 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated XME expiries trade a higher absolute premium for lower per-day decay. Position sizing on XME should anchor to the underlying notional of $117.38 per share and to the trader's directional view on XME etf.

XME collar setup

The XME collar below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With XME at $117.38 on that close, the first option leg uses a $123.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed XME chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 XME shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 100 shares	Stock	$117.38	long
Sell 1	Call	$123.00	$3.25
Buy 1	Put	$112.00	$2.78

XME collar risk and reward

Net Premium / Debit: -$11,690.50
Max Profit (per contract): $609.50
Max Loss (per contract): -$490.50
Breakeven(s): $116.91
Risk / Reward Ratio: 1.243

Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium.

XME collar payoff curve

Modeled P&L at expiration across a range of underlying prices for the collar on XME. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$490.50
$25.96	-77.9%	-$490.50
$51.91	-55.8%	-$490.50
$77.87	-33.7%	-$490.50
$103.82	-11.6%	-$490.50
$129.77	+10.6%	+$609.50
$155.72	+32.7%	+$609.50
$181.68	+54.8%	+$609.50
$207.63	+76.9%	+$609.50
$233.58	+99.0%	+$609.50

When traders use collar on XME

Collars on XME hedge an existing long XME etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.

XME thesis for this collar

The market-implied 1-standard-deviation range for XME extends from approximately $105.64 on the downside to $129.12 on the upside. A XME collar hedges an existing long XME position with a protective put while financing the put cost via a short call; when the premiums roughly offset, the collar acts as a near-zero-cost insurance band around the current spot. Current XME IV rank near 30.88% is mid-range against its 1-year distribution, so the IV signal is neutral; the collar thesis on XME should anchor more to the directional view and the expected-move geometry. As a Financial Services name, XME options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to XME-specific events.

XME collar positions are structurally neutral (protective); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. XME positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move XME alongside the broader basket even when XME-specific fundamentals are unchanged. Always rebuild the position from current XME chain quotes before placing a trade.

Frequently asked questions

What is a collar on XME?: A collar on XME is the collar strategy applied to XME (etf). The strategy is structurally neutral (protective): A collar pairs long stock with a protective out-of-the-money put financed by a short out-of-the-money call, capping both tails of the position around the current spot. With XME etf at $117.38 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed XME chain strike and the premiums come straight from that session's bid/ask midpoint.
How are XME collar max profit and max loss calculated?: Max profit roughly equals short-call strike minus cost basis plus net premium; max loss roughly equals cost basis minus long-put strike minus net premium. Breakeven shifts by the net premium. For the XME collar priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 34.90%), the computed maximum profit is $609.50 per contract and the computed maximum loss is -$490.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a XME collar?: The breakeven for the XME collar priced on this page is roughly $116.91 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The XME market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.01%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a collar on XME?: Collars on XME hedge an existing long XME etf position; the long put sets a floor while the short call finances it, often run as a near-zero-cost hedge during expected volatility windows.
How does current XME implied volatility affect this collar?: XME ATM IV is at 34.90% with IV rank near 30.88%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.